NEW DIRECTIONAL CALL PLAYS
Ecolab Inc. - ECL - close: 89.05 change: +0.97
Stop Loss: 87.95
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
ECL is in the consumer goods sector. The company focuses on cleaning products and services.
You could label the stock overbought with a multi-week streak of gains. Yet after consolidating sideways for the last few sessions ECL now looks poised to break out higher again.
Shares outperformed the market today thanks to some bullish analyst comments and a new higher price target. Today's high was $89.47. More aggressive traders could buy a rally past $89.50. Tonight we are suggesting a trigger at $90.25. If triggered our target is $98.50.
I am encouraging traders to keep their position size small to limit risk since ECL does look a bit over extended here.
Trigger @ 90.25 *Small Positions*
- Suggested Positions -
buy the Jun $90 call (ECL1322F90) current ask $1.20
Entry on May -- at $---.--
Average Daily Volume = 1.0 million
Listed on May 21 2013